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EZCORP Announces Second Fiscal Quarter Results

Apr 24, 2007

EZCORP, Inc. (NASDAQ: EZPW) announced today results for its second fiscal quarter and six month period, which ended March 31, 2007.

For the quarter ended March 31, 2007, EZCORP's net income increased 32% to $10,196,000 ($0.23 per share) compared to $7,727,000 ($0.19 per share) for the quarter ended March 31, 2006. Total revenues for the second fiscal quarter increased 14% to $89,643,000 while operating income improved 29% to $14,880,000.

For the six months ended March 31, 2007, EZCORP's net income increased 38% to $19,957,000 ($0.46 per share) compared to $14,483,000 ($0.35 per share) for the prior year six month period. Total revenues grew 17% to $181,330,000 while operating income increased 35% to $29,503,000. Operating income margins for the six months, measured as a percent of net revenue, improved almost three percentage points to 24.4%.

Commenting on these results, President and Chief Executive Officer, Joe Rotunda, stated, "Our results for the second fiscal 2007 quarter were driven by continued strong growth in our payday loan and credit service business and strong growth in our pawn business. Payday loan and credit service fees increased 46% to $22.7 million while bad debt measured as a percent of fee revenues improved a percentage point to just under 13%. Our pawn net revenue improved 4% to $36.6 million with pawn service charges and sales gross profit increasing 7% and 2% over the prior year period."

Rotunda continued, "This was a very productive quarter for us. During the period, we opened a net twenty-nine EZMONEY stores, we opened our second Mexico EZPAWN location, we agreed to acquire fifteen Colorado pawn locations and we introduced our installment loan product in selective test locations. We believe each of these accomplishments will help drive earnings growth in upcoming quarters."

Rotunda concluded, "We expect our third fiscal 2007 quarter's earnings to be approximately $0.15 per share compared to $0.13 for the fiscal 2006 third quarter. For our 2007 fiscal year, we are raising guidance to approximately $0.86 per share compared to fiscal 2006's $0.69 per share. Based on new EZMONEY locations in the pipeline, we expect to open approximately 65 EZMONEY stores over the next two quarters for a total of 100 net new EZMONEY locations this fiscal year. In early June, we expect to complete our Colorado store acquisition, adding fifteen EZPAWN locations; and, during the next two quarters, we will open one to two additional Mexico EZPAWN stores."

EZCORP is primarily a lender or provider of credit services to individuals who do not have cash resources or access to credit to meet their short-term cash needs. The Company offers non-recourse loans collateralized by tangible personal property, commonly known as pawn loans, in 280 U.S. and two Mexico EZPAWN locations open at March 31, 2007. At these locations, the Company also sells merchandise, primarily collateral forfeited from its pawn lending operations, to consumers looking for good value. In 369 EZMONEY locations and 80 EZPAWN locations open at March 31, 2007, the Company offers short-term non- collateralized loans, often referred to as payday loans, or fee based credit services to customers seeking loans.

This announcement contains certain forward-looking statements regarding the Company's expected performance for future periods including, but not limited to, new store expansion and expected future earnings. Actual results for these periods may materially differ from these statements. Such forward- looking statements involve risks and uncertainties such as changing market conditions in the overall economy and the industry, consumer demand for the Company's services and merchandise, changes in the regulatory environment, and other factors periodically discussed in the Company's annual, quarterly and other reports filed with the Securities and Exchange Commission.

You are invited to listen to a conference call discussing these results on April 24, 2007 at 3:30pm Central Time. The conference call can be accessed over the Internet or replayed at your convenience at the following address.

  http://www.videonewswire.com/event.asp?id=38919
  For additional information, contact Dan Tonissen at (512) 314-2289.



                               EZCORP, Inc.
     Highlights of Consolidated Statements of Operations (Unaudited)
                  (in thousands, except per share data)

                                                Three Months Ended March 31,
                                                   2007              2006
   1  Revenues:
   2    Merchandise sales                        $39,507           $39,036
   3    Jewelry scrapping sales                   10,525             8,569
   4    Pawn service charges                      16,556            15,453
   5    Credit service fees                       20,041            14,451
   6    Payday loan fees                           2,672             1,103
   7    Other                                        342               329
   8      Total revenues                          89,643            78,941
   9  Cost of goods sold:
   10   Cost of merchandise sales                 23,576            22,775
   11   Cost of jewelry scrapping sales            6,798             5,562
   12     Total cost of goods sold                30,374            28,337
   13 Net revenues                                59,269            50,604
   14
   15 Operations expense                          31,104            28,076
   16 Credit service bad debt                      2,402             1,873
   17 Payday loan bad debt                           514               284
   18 Administrative expense                       7,968             6,695
   19 Depreciation and amortization                2,401             2,136
   20   Operating income                          14,880            11,540
   21
   22 Interest income                               (567)              (90)
   23 Interest expense                                83               131
   24 Equity in net income of
       unconsolidated affiliate                     (820)             (673)
   25 (Gain) loss on sale/disposal of assets         ---                23
   26 Income before income taxes                  16,184            12,149
   27 Income tax expense                           5,988             4,422
   28 Net income                                 $10,196            $7,727
   29
   30 Net income per share, diluted                $0.23             $0.19
   31
   32 Weighted average shares, diluted            43,445            41,514



                               EZCORP, Inc.
     Highlights of Consolidated Statements of Operations (Unaudited)
                  (in thousands, except per share data)

                                                 Six Months Ended March 31,
                                                   2007              2006
   1  Revenues:
   2    Merchandise sales                        $77,386           $74,692
   3    Jewelry scrapping sales                   21,626            15,266
   4    Pawn service charges                      34,518            31,967
   5    Credit service fees                       42,068            29,873
   6    Payday loan fees                           5,040             2,255
   7    Other                                        692               658
   8      Total revenues                         181,330           154,711
   9  Cost of goods sold:
   10   Cost of merchandise sales                 46,158            43,547
   11   Cost of jewelry scrapping sales           14,039            10,451
   12     Total cost of goods sold                60,197            53,998
   13 Net revenues                               121,133           100,713
   14
   15 Operations expense                          62,492            54,551
   16 Credit service bad debt                      7,606             5,643
   17 Payday loan bad debt                         1,338               888
   18 Administrative expense                      15,495            13,517
   19 Depreciation and amortization                4,699             4,259
   20   Operating income                          29,503            21,855
   21
   22 Interest income                               (881)              (90)
   23 Interest expense                               147               353
   24 Equity in net income of
       unconsolidated affiliate                   (1,465)           (1,188)
   25 (Gain) loss on sale/disposal of assets          24                 8
   26 Income before income taxes                  31,678            22,772
   27 Income tax expense                          11,721             8,289
   28 Net income                                 $19,957           $14,483
   29
   30 Net income per share, diluted                $0.46             $0.35
   31
   32 Weighted average shares, diluted            43,347            40,937



                               EZCORP, Inc.
          Highlights of Consolidated Balance Sheets (Unaudited)
          (in thousands, except per share data and store counts)

                                                       As of March 31,
                                                   2007              2006
   1  Assets:
   2    Current assets:
   3      Cash and cash equivalents              $61,605           $26,041
   4      Pawn loans                              43,109            39,044
   5      Payday loans, net                        3,314             1,507
   6      Pawn service charges receivable, net     6,986             6,598
   7      Credit service fees receivable, net      3,718             2,663
   8      Payday loan fees receivable, net           616               250
   9      Inventory, net                          28,649            30,764
   10     Deferred tax asset                       7,150            10,629
   11     Prepaid expenses and other assets        5,373             4,014
   12       Total current assets                 160,520           121,510
   13   Investment in unconsolidated affiliate    20,955            17,614
   14   Property and equipment, net               30,967            27,124
   15   Deferred tax asset, non-current            4,249             4,012
   16   Other assets, net                          3,720             3,471
   17     Total assets                          $220,411          $173,731
   18 Liabilities and stockholders' equity:
   19   Current liabilities:
   20     Accounts payable and other accrued
           expenses                              $18,594           $16,576
   21     Customer layaway deposits                2,168             2,147
   22     Federal income taxes payable             1,104             1,035
   23       Total current liabilities             21,866            19,758
   24
   25   Deferred gains and other long-term
         liabilities                               3,067             3,430
   26   Total stockholders' equity               195,478           150,543
   27     Total liabilities and stockholders'
           equity                               $220,411          $173,731
   28
   29 Pawn loan balance per ending pawn store       $153              $139
   30 Inventory per ending pawn store               $102              $109
   31 Book value per share                         $4.74             $3.80
   32 Tangible book value per share                $4.67             $3.74
   33 EZPAWN store count - end of period             282               281
   34 EZMoney signature loan store count -
       end of period                                 369               263
   35 Shares outstanding - end of period          41,248            39,569



                               EZCORP, Inc.
                  Operating Segment Results (Unaudited)
                   (in thousands, except store counts)

                                           EZPAWN      EZMONEY
                                         Operations  Operations Consolidated
      Three months ended March 31, 2007:
   1    Revenues:
   2      Sales                            $50,032        $---      $50,032
   3      Pawn service charges              16,556         ---       16,556
   4      Credit service fees                  501      19,540       20,041
   5      Payday loan fees                     313       2,359        2,672
   6      Other                                342         ---          342
   7        Total revenues                  67,744      21,899       89,643
   8
   9    Cost of goods sold                  30,374         ---       30,374
   10       Net revenues                    37,370      21,899       59,269
   11
   12   Operating expenses:
   13     Operations expense                21,569       9,535       31,104
   14     Credit service bad debt               91       2,311        2,402
   15     Payday loan bad debt                  62         452          514
   16       Total direct expenses           21,722      12,298       34,020
   17       Store operating income         $15,648      $9,601      $25,249
   18
   19   EZPAWN store count - end of period     282         ---          282
   20   EZMoney signature loan store
         count - end of period                   7         362          369
   21
   22 Three months ended March 31, 2006:
   23   Revenues:
   24     Sales                            $47,605        $---      $47,605
   25     Pawn service charges              15,453         ---       15,453
   26     Credit service fees                  430      14,021       14,451
   27     Payday loan fees                     308         795        1,103
   28     Other                                329         ---          329
   29       Total revenues                  64,125      14,816       78,941
   30
   31   Cost of goods sold                  28,337         ---       28,337
   32       Net revenues                    35,788      14,816       50,604
   33
   34   Operating expenses:
   35     Operations expense                21,938       6,138       28,076
   36     Credit service bad debt              123       1,750        1,873
   37     Payday loan bad debt                  57         227          284
   38       Total direct expenses           22,118       8,115       30,233
   39       Store operating income         $13,670      $6,701      $20,371
   40
   41   EZPAWN store count - end of period     281         ---          281
   42   EZMoney signature loan store
         count - end of period                   7         256          263



                               EZCORP, Inc.
                  Operating Segment Results (Unaudited)
                   (in thousands, except store counts)

                                          EZPAWN      EZMONEY
                                        Operations  Operations Consolidated
      Six months ended March 31, 2007:
   1    Revenues:
   2      Sales                            $99,012        $---     $99,012
   3      Pawn service charges              34,518         ---      34,518
   4      Credit service fees                1,078      40,990      42,068
   5      Payday loan fees                     668       4,372       5,040
   6      Other                                692         ---         692
   7        Total revenues                 135,968      45,362     181,330
   8
   9    Cost of goods sold                  60,197         ---      60,197
   10       Net revenues                    75,771      45,362     121,133
   11
   12   Operating expenses:
   13     Operations expense                43,311      19,181      62,492
   14     Credit service bad debt              294       7,312       7,606
   15     Payday loan bad debt                 206       1,132       1,338
   16         Total direct expenses         43,811      27,625      71,436
   17         Store operating income       $31,960     $17,737     $49,697
   18
   19   EZPAWN store count - end of period     282         ---         282
   20   EZMoney signature loan store
         count - end of period                   7         362         369
   21
   22 Six months ended March 31, 2006:
   23   Revenues:
   24     Sales                            $89,958        $---     $89,958
   25     Pawn service charges              31,967         ---      31,967
   26     Credit service fees                  652      29,221      29,873
   27     Payday loan fees                     749       1,506       2,255
   28     Other                                658         ---         658
   29       Total revenues                 123,984      30,727     154,711
   30
   31   Cost of goods sold                  53,998         ---      53,998
   32       Net revenues                    69,986      30,727     100,713
   33
   34   Operating expenses:
   35     Operations expense                42,656      11,895      54,551
   36     Credit service bad debt              225       5,418       5,643
   37     Payday loan bad debt                 297         591         888
   38       Total direct expenses           43,178      17,904      61,082
   39       Store operating income         $26,808     $12,823     $39,631
   40
   41   EZPAWN store count - end of period     281         ---         281
   42   EZMoney signature loan store
         count - end of period                   7         256         263

First Call Analyst:
FCMN Contact: sharon_lemond@ezcorp.com

SOURCE: EZCORP, Inc.

CONTACT: Dan Tonissen of EZCORP, Inc., +1-512-314-2289

Web site: http://www.ezcorp.com/
http://www.videonewswire.com/event.asp?id=38919

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